Oregon businesses will soon be able to legally organize not just as non-profits or for-profits, but also as BENEFIT CORPORATIONS. That means, instead of allowing profit to trump all other interests (which Oregon law dictated until now), companies will be able to serve some social goal while also making money.
Who Else Has Benefit Corporations?
17 other states have decided it makes sense to have companies think about how they impact their community and the world. With the stroke of Governor John Kitzhaber’s pen, Oregon has joined states that say: As businesses create jobs and profits, they should not be penalized (or subjected to shareholder lawsuits) for contributing to the public good at the same time.
How Did Your Representative Vote on Benefit Corporations?
Several Oregon legislators opposed HB 2296. Here’s how they voted. PRP invites any of the naysayers to offer a rationale for discouraging corporations from contributing something positive to the public good as they go about conducting business. Is there a compelling argument for continuing to require the pursuit of profit over all other competing values?
What Does a Benefit Corporation Mean to Businesses?
Duncan Delano, an attorney with Tonkon Torp, wrote a nice explanation – for sustainablebusinessoregon.com – on the new way Oregon businesses will be able to define themselves when the bill takes effect in January.